Business Description Worksheet

A successful business needs an effective business plan. This plan outlines the goals of a company, how it intends to achieve those goals, and the timeline for accomplishing them. A business plan includes several sections, and a well-written business description is one of its most important components.

A business description should be concise and error-free and should include relevant details about the company. It should also be compelling enough to attract readers such as lenders and investors, encouraging them to review the rest of the business plan and learn more about the company.

What is a Business Description Worksheet?

A Business Description Worksheet is a document that helps organize information about what a company does, its purpose, and what makes it unique. It is a useful tool in the business planning process. The information recorded in the worksheet can be used to draft the business description section of a business plan.

(Create your free business description worksheet using the tool below.)

What does a Business Description Worksheet do?

A Business Description Worksheet helps explain how a business benefits its customers and where it fits in the market. Business owners and planning teams can use it to prepare a clear description for lenders, investors, potential partners, and employees. The worksheet provides an organized overview of the business and its core functions.

How to Create a Business Description Worksheet

To create an effective business description worksheet, include key details that explain what the company does, who manages it, and what factors support its potential for success. Consider the following points when preparing the worksheet:

Name of the Business

State the official name of the business and any trading name, where applicable. You should also include the names of the owners and other key members of the management team.

Business Goals

Explain the purpose of the business and what you aim to achieve through your venture. Ensure that the goals are realistic and cover both short-term and long-term objectives.

Target Customers

Identify your target audience and explain whom you plan to sell to. Also, describe why they would choose your product or service. Include their needs and motivations, as well as their expected purchasing behavior. Relevant characteristics, such as age group, income level, and interests, can help you better understand your market and tailor your offering.

Competitive Advantage

Explain what makes your business different from its competitors. Readers should clearly understand the strengths that could help your business compete successfully in the market.

Business Location

Specify where the business is located or will be headquartered, as well as its primary area of operation. Also, mention when the business was established or is expected to launch.

Mission Statement

The mission statement explains why your company exists. It should briefly describe its purpose, whom it serves, and the value it aims to provide.

Products and Services

Describe the products or services your business offers. Explain their benefits and what differentiates them from competing offerings in the market.

Business Structure

Indicate the legal structure of the business, such as a sole proprietorship, partnership, or limited company.

Importance of a Business Description Worksheet

A Business Description Worksheet provides a single, organized place to collect the information needed to explain the company clearly. The resulting business description can capture the interest of investors and lenders, encouraging them to read the full business plan.

The business description is often an early opportunity to impress stakeholders and explain the business’s strengths and plans. If it is clear and engaging, it can motivate readers to explore the rest of the business plan and learn more about the company’s potential.

The following Microsoft Word template is provided to help you prepare your business description worksheet.